Tiptree Inc. · NASDAQ:TIPT
Tiptree — Q2 2019 Earnings Presentation
20 slides from Tiptree's earnings presentation, Aug 5, 2019
Slide 1: Investor Presentation - Second Quarter 2019
Exhibit 99.2 NASDAQ: TIPT INVESTOR PRESENTATION - SECOND QUARTER 2019 August 2019 Financial information for the three and six months ended June 30, 2019
Slide 2: Disclaimers
DISCLAIMERS LIMITATIONS ON THE USE OF INFORMATION This presentation has been prepared by Tiptree Inc. and its consolidated subsidiaries (“Tiptree", "the Company" or "we”) solely for informational purposes, and not for the purpose of updating any information or forecast with respect to Tiptree, its s
Slide 3: Overview & Financial Results: Key Highlights
OVERVIEW & FINANCIAL RESULTS Key Highlights
Slide 4: Overview: First Half Financials Key Highlights
OVERVIEW First Half Financials Key highlights Revenue Specialty Insurance þ $375.0 million Year-to-date gross written premiums of $461.0m, up 17.0%, with net written premiums of $274.6m, up 34.0%, driven by growth in credit and warranty products 24.7% vs. prior year þ Insurance Operating EBITDA of $
Slide 5: Financial Results
FINANCIAL RESULTS ($ in millions, except per share information) Consolidated financial metrics Key drivers Highlights: Q2'18 Q2'19 Q2'18 Q2'19 YTD YTD • Growth in insurance underwriting results Total Revenues $152.7 $191.1 $300.8 $375.0 • Consistent earnings from Invesque dividends Net income (loss)
Slide 6: Capital Allocation
CAPITAL ALLOCATION ($ in millions, except per share information) Tiptree 1 Total Operating Q2'19 LTM Highlights Equity BVPS Capital1 EBITDA1 Relatively stable Operating EBITDA return on average Q2'19 total capital of 8.4% Business Lines Q2'19 Q2'19 Q2'19 LTM • Specialty Insurance: 13.9% • Tiptree Ca
Slide 7: Specialty Insurance
SPECIALTY INSURANCE
Slide 8: Financial Performance Highlights
FINANCIAL PERFORMANCE HIGHLIGHTS ($ in millions) Financial metrics Q2'19 year-to-date highlights & outlook Q2'18 Q2'19 Q2'18 Q2'19 Continuing to expand product offerings with a focus on YTD YTD 1 growth in written premiums and stable profitability Gross Written Premiums $193.5 $262.6 $394.1 $461.0 R
Slide 9: Investment Portfolio
INVESTMENT PORTFOLIO ($ in millions) Net Investments1 Investment approach $488.7 79.02 We actively manage our investment portfolio to achieve a balance of: 40.2 Other • Short-term liquidity to cover current claims obligations $410.1 23.5 17.0 Real Estate 14.6 • Enhanced risk-adjusted returns through
Slide 10: Tiptree Capital
TIPTREE CAPITAL
Slide 11: Financial Performance Highlights
FINANCIAL PERFORMANCE HIGHLIGHTS ($ in millions) Invested Capital1 Recent developments & outlook • Repositioned our asset management operations by selling our $201.1 CLO management business $177.5 37.9 $163.7 27.0 • Increased our exposure to real assets with $48.7 million 36.1 Specialty finance depl
Slide 12: Outlook
OUTLOOK ($ in millions) Q2'19 Highlights Book value per share1 ü Year-to-date shareholder return of 7.0%2, including $11.6 million returned $10.74 $11.47 to shareholders through buy-backs and dividends ü Increased quarterly dividend for third consecutive year ü Continued execution on organic growth
Slide 13: Appendix
APPENDIX
Slide 14: Operating EBITDA and Adjusted EBITDA
NON-GAAP RECONCILIATIONS Operating EBITDA and Adjusted EBITDA Management uses Operating EBITDA, Adjusted EBITDA and book value per share as measurements of operating performance which are non-GAAP measures. Management believes the use of Operating EBITDA and Adjusted EBITDA provides supplemental inf
Slide 15: Adjusted & Operating EBITDA
NON-GAAP RECONCILIATIONS - ADJUSTED & OPERATING EBITDA ($ in millions) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income (loss) attributable to Common Stockholders $ 11.8 $ 0.8 $ 15.7 $ 24.4 Add: net (loss) income attributable to noncontrolling interests 0.4 0.1 0.
Slide 16: Adjusted and Operating EBITDA
NON-GAAP RECONCILIATIONS - ADJUSTED AND OPERATING EBITDA Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Specialty Tiptree Corporate Specialty Tiptree Corporate ($ in millions) Insurance Capital (1) Expenses Total Insurance Capital (1) Expenses Total Pre-tax income/(loss) from cont
Slide 17: Adjusted and Operating EBITDA - Trailing Twelve Months
NON-GAAP RECONCILIATIONS - ADJUSTED AND OPERATING EBITDA Trailing Twelve Months Ended June 30, 2019 Trailing Twelve Months Ended June 30, 2018 Specialty Tiptree Corporate Specialty Tiptree Corporate ($ in millions) Insurance Capital (1) Expenses Total Insurance Capital (1) Expenses Total Pre-tax inc
Slide 18: BVPS, Invested and Total Capital
NON-GAAP RECONCILIATIONS - BVPS, INVESTED AND TOTAL CAPITAL Management uses Book value per share, which is a non-GAAP financial measure. Prior to April 10, 2018, book value per share assumes full exchange of the limited partners units of TFP for Common Stock. Management believes the use of this fina
Slide 19: Specialty Insurance
NON-GAAP RECONCILIATIONS - SPECIALTY INSURANCE The following table provides a reconciliation between underwriting margin and pre-tax income. We generally limit the underwriting risk we assume through the use of both reinsurance (e.g., quota share and excess of loss) and retrospective commission agre
Slide 20: Specialty Insurance
NON-GAAP RECONCILIATIONS - SPECIALTY INSURANCE The investment portfolio consists of assets contributed by Tiptree, cash generated from operations, and from insurance premiums written. The investment portfolio of our regulated insurance companies, captive reinsurance company and warranty business are